Why it’s a smart idea.
Life just seems to be getting busier, doesn’t it? We’re living in an instant world and businesses are connected 24/7. Customers expect instant responses. Despite the pressure this brings, it’s important to remember to take time out. Time to catch a breath and think. Time to set the groundwork for a successful year ahead.

Ask yourself this:
What do you want your business to look like in 12 months time?
Success is about planning and providing a structure for deciding your goals and priorities for 2010. Running a business is challenging enough without doing it blindfolded. Yet that’s what can happen if you don’t think ahead.

Revising your business plan

What can be really helpful is a map – known as a business plan. When starting out, you probably created one for your business. You will have written it down, worked on it, re-written it, discussed it with people you trust, re-written it again and so on, until you were happy with it. Why? Simple: to give your business idea the best possible chance of success.

Often, the primary reasons for creating a business plan include:
• To further develop an idea and set strategies to reach your goals
• To provide direction and to focus thinking about markets, competitors and risks
• To identify the required resources and funding
• To ensure your business stays on track by helping you to measure your progress and keep track of successes
• To demonstrate to stakeholders that things have been thought through and show you have a realistic concept of what’s involved.

Of course, business plans aren’t a one-off thing and many of these issues 
will be as important today and in the future, as they were in the past – even when your priorities have changed. The most successful businesses see making a plan as an ongoing process. You can and should take time to fine-tune, develop, and, if need be, rip it up and start again (depending on what’s gone before and 
what may lie ahead). Think of it as a guide that shows the direction your company should be heading in and something that helps to identify important markers along the way. It requires you to think methodically about your ideas and tests whether they’re realistic or not.

Select targets for the coming year

First things first. Set aside some time away from work when you won’t be interrupted or distracted by other activities. It can be difficult as an owner to do this, but it’s well worth it. Have up-to-date records handy and any other information you’ll need – like cashflow records, and budget and sales figures. If you’ve previously done a business plan, fish it out so you can see how you’re doing.

The key questions a plan should tackle are:
• What are your goals? For example higher revenue, launching a new product, or re-negotiating a contract with a major customer?
• How will you reach those goals?

The main headings will vary depending on your business and industry, but generally will include:
• Mission statement
• Situation analysis
• Target market
• Business objectives
• Marketing strategies
• Action plan.

A useful place to start is to review the year that’s just gone. What went well? What didn’t? What are your company’s strengths and weaknesses? What lessons have been learned? It’s a process few people do, but one that could make your next year one of your best ever.

In order to create a plan, it’s a good idea to assess the following:
1. Trends – Be aware of what’s happening locally and internationally in your business area. What is the latest trend? Will it last? Will technology make a difference? Will the environment become an issue?
2. Threats – Try to identify potential threats early like technology, new regulations, or someone diversifying into your market.
3. Opportunities – Identify areas for growth and development. What makes your product or service different or special? How do you plan to attract customers? How do you intend to beat the competition?

The effort you put in now ensures that you can not only keep the business running, but also set a clear direction for future success. A good business plan will help you open your mind to new opportunities and act as a scorecard to rate your own progress. It can be extremely rewarding, so isn’t it time you took time-out?

For more information on writing a business plan and some helpful downloadable templates, visit www.goodbusiness.co.nz .